Monday, May 26, 2014

Risk News & Updates : Lawyer Insider Trading, Playbook Conflicts, and Information Governance



Various risk updates to share today. First, allegations of lawyer inside trading. In this case, the story involves someone directly in the matter. (As we've always noted, direct malfeasance is always a tough risk scenario to manage in any information security context.) This story involves an individual who was previously with a 300+ lawyer firm: "Mayor of Kentucky town settles civil charges of insider trading"--
  • "A lawyer previously employed at a corporate law firm who now serves as mayor of Fort Mitchell, Kentucky, has agreed to pay nearly $118,000 to resolve civil charges of insider trading by the U.S. Securities and Exchange Commission."
  • "In an order issued Tuesday, the SEC said Christopher Wiest in 2010 bought InfoLogix Inc stock based on inside information that the company was about to be bought by Stanley Black & Decker Inc. Wiest had worked on the deal while at a law firm retained by Stanley Black & Decker, the SEC said. He subsequently began buying stock in InfoLogix, a provider of mobility solutions for healthcare and commercial industries, the SEC said."
Regarding playbook conflicts, the prolific Bill Freivogel notes: "SalDan v. Super. Bus. Dev. Bank, 2014 ONSC 2979 (CanLII) (Ont. Super. Ct. May 15, 2014)" --
  • "Law Firm represented Defendant in Defendant’s creation. In this case Law Firm is asserting a construction lien for Plaintiff against Defendant. Defendant moved to disqualify Law Firm. In this opinion the court granted the motion. In a fact-intensive analysis the court found the earlier representation sufficiently related to the construction project. The court also noted playbook elements such as Law Firm’s knowledge of Defendant’s 'legal and business strategies and risk tolerances,' which would provide Plaintiff with 'a distinct advantage' in this case."
ILTA posted a recording of an interesting webinar featuring the risk consulting experts at InOutsource on the topic: "Measuring the Return on Investment of Strong Information Governance Processes." --
  • "In addition to providing access to information while reducing risk, improved information governance (IG) processes can be leveraged as a cost-saving measure -- resulting in significant savings for your firm. Join us as we demonstrate how we calculated the true costs of managing information and how we defined metrics to measure savings."

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